Why Is a Short Term Lease or Rental of Property

question 43

Multiple Choice

Why is a short term lease or rental of property an attractive way for a business to acquire the use of equipment for a particular task or period of time?

• A) A lease protects creditors whether the arrangement is contractual or not.
• B) A lease is a form of sale and is covered by the large number of terms implied through legislation governing the sale of goods
• C) It makes little sense to purchase something that is not needed for a long period,unless,of course,the rental charges approach the cost of buying.
• D) The lessee must take reasonable care of the property while that property is in its possession and return it in the state that would be expected

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Definitions:

Non-synchronized

Referring to a gearbox that requires the operator to manually match gear speeds before engaging the gear, often found in older or specialized vehicles.

Double-clutching

A driving technique used in manual transmission vehicles where the clutch is depressed twice during a gear change to match the rotational speeds of the engine and transmission.

Axis Of Rotation

The axis of rotation refers to an imaginary line around which an object rotates or spins.

Centerline

A reference line that divides a component or structure into equal parts, often used in design and manufacturing.